Dodd-Frank.com

Fix Crowdfunding Act Improves JOBS Act

By | March 26, 2016

The Fix Crowdfunding Act has been introduced by Representative Patrick McHenry, who was one of the architects of the FAST Act provisions simplifying securities laws.

The Fix Crowdfunding Act increases the $1,000,000 issuer annual raise limit under the JOBS Act crowdfunding provisions to $5,000,000, addresses the liability of funding portals and allows single purpose funds, among other things.

The Act also provides “no enforcement action may be brought against a funding portal before May 16, 2021.” I’m not really a fan of the Feds moving in anytime and anywhere for any reason,¬†and this looks like a bridge too far to me. But I will give Representative McHenry points for creativity.

Stinson Leonard Street LLP provides sophisticated transactional and litigation legal services to clients ranging from individuals and privately held enterprises to national and international public companies. As one of the 100 largest firms in the U.S., Stinson Leonard Street has offices in 14 cities, including Minneapolis, Mankato and St. Cloud, Minn.; Kansas City, St. Louis and Jefferson City, Mo.; Phoenix, Ariz.; Denver, Colo.; Washington, D.C.; Decatur, Ill.; Wichita and Overland Park, Kan.; Omaha, Neb.; and Bismarck, N.D.

The views expressed herein are the views of the blogger and not those of Stinson Leonard Street or any client.

Contact Steve Quinlivan for more information.

Topics: 
Crowdfunding